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The National Bureau of Statistics (NBS) during the weekend released its first quarter 2018 report, which indicated that Automated Teller Machine (ATM) transactions dominated the volume of transactions in the banking sector.
The report showed that 212,370,853 volume of ATM transactions valued at N1,568 billion were recorded in the first quarter of 2018.
A total volume of 457,226,406 transactions valued at N32.48 trillion were recorded in Q1 2018 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.
“It means that the economy is driven by use of debit cards”, said Ayodeji Ebo, managing director, Afrinvest Securities limited.
Ebo said there need for the banking sector to do a lot more enlightenment programmes to encourage customers to use other electronic channels like PoS.
He noted that business owners are discouraged by high charges on PoS and therefor prefer to collect cash from customers. There is need to review charges on PoS for business owners and to encourage the use of other cashless electronic transaction channels, Ebo said.
The 2017 first half economic report of the Central Bank of Nigeria (CBN) revealed that the volume and value of electronic payments (comprising ATM, PoS, Mobile payments and internet) increased by 5.8 and 14.1 per cent to 461.8 million and N4,295.9 billion respectively, in the first half of 2017 above 436.5 million and N3,764.9 billion in the second half of 2016.
A breakdown of e-payment channels for the review period indicated that the ATM remained the most patronised, accounting for 79.4 per cent, followed by PoS terminal and mobile payments, with 12.9 and 5.2 per cent, respectively. The web (internet) was the least patronised, accounting for 2.5 per cent of the total. In terms of value, the ATM accounted for 70.9 per cent; PoS, 14.2 per cent; mobile payments, 12.9 per cent and the web (internet), 2.0 per cent.
The number of ATMs stood at 17,712 at end-June 2017 from 17,083 in the corresponding period of 2016, representing a slight increase of 3.7 per cent. ATM transactions increased in both volume and value by 40.4 and 38.2 per cent to 366.8 million and N3,046.3 billion respectively, in the first half of 2017, above 261.2 million and N2,204.5 billion in the corresponding period of 2016, respectively.
The volume and value of internet transactions increased by 113.0 and 44.3 per cent, to 11.5 million and N83.7 billion, respectively, in the first half of 2017 above 5.4 million and N58.0 billion in the corresponding period of 2016. The rise was due largely to increased awareness and acceptance of internet payment.
The number of PoS terminals in operation increased by 3.4 per cent to 125,608 at end of June 2017 above 121,488 in the corresponding period of 2016. The PoS transactions increased significantly both in volume and value by 134.8 and 97.8 per cent to 59.4 million and N610.1 billion respectively, above 25.3 million and N308.5 billion in the corresponding period of 2016. The rise in PoS transactions in both volume and value was due to increased public confidence and acceptance of the terminal.
The volume and value of mobile payments increased by 6.6 and 83.1 per cent to 24.2 million and N555.8 billion, respectively, in the first half of 2017 above 22.7 million and N303.5 billion, in the corresponding period of 2016. The rise was due to continued acceptance of mobile payments as an alternative and convenient mode of payment.
HOPE MOSES-ASHIKE
